GST LUT for Exports

Overview

Exports and supplies to SEZs are zero-rated under GST. A Letter of Undertaking (LUT), furnished in Form RFD-11, lets an eligible registered person make these supplies without paying IGST and without having to claim the tax back later. It is valid for one financial year and must be renewed. Without a valid LUT, an exporter has to pay IGST on every invoice and claim a refund afterwards, which locks up cash.

Who needs it

• Exporters of goods and services who want to export without paying IGST.
• Suppliers to SEZ units and SEZ developers who supply without payment of tax.
• Deemed export suppliers who qualify to use a LUT.
• Exporters whose LUT for the new financial year is yet to be filed.
• Exporters with a history of tax prosecution above the limit, who must furnish a bond instead.

What Zenith does

Zenith listens first: what you export, the kind of supply, your IEC and whether you had a LUT in earlier years. We give a tailored quotation and assign a relationship manager. The team checks eligibility, prepares RFD-11 with the right financial year and category, files it with your DSC or EVC, downloads the acknowledgement and certificate, and explains how to use it on invoices and returns (including the LUT reference in e-invoices and shipping bills). We set a renewal reminder before the next financial year begins. Zenith prepares and files the LUT; the portal accepts it on the declared eligibility.

Eligibility and key rules

• You must have an active GST registration; returns should be up to date.
• LUT is available to registered persons who have not been prosecuted for tax evasion above a stated amount (public sources state Rs 2.5 crore). Others furnish a bond with security instead.
• A LUT covers a single financial year (1 April to 31 March). File for the new year before the first export invoice; it can be filed before the year starts.
• It is furnished on the portal under Services, User Services, Furnish Letter of Undertaking (LUT).
• IEC is required for exporters of goods; supplies to SEZs follow their own conditions.
• If export proceeds are not realised or conditions are breached, the benefit can be withdrawn and IGST with interest becomes payable.
• A LUT is not a refund; it removes the need to pay tax. Accumulated credit from LUT exports is claimed separately as a refund.

Documents required

• GSTIN and PAN of the business.
• IEC for goods exporters.
• Signatory's KYC and authorisation letter or board resolution.
• Previous LUT and acknowledgement (for renewal).
• Bank details and a list of expected export or SEZ transactions.
• DSC or EVC access of the authorised signatory.

Process and timeline

1. Confirm registration status, return compliance and the financial year.
2. Zenith prepares RFD-11 with signatory, category and declaration.
3. Submit with DSC or EVC; download the acknowledgement.
4. Download the certificate from Services, User Services, View My Submitted LUTs.
5. Furnish it to customs or the buyer where needed and use it for invoices.
6. Renew every year.

Timelines depend on completeness, complexity and authority processing; the portal generally issues the acknowledgement on submission.

Government fees, penalties and due dates

• No government fee applies to filing a LUT. Professional fees are customised; government fees are shown separately in the quotation.
• Validity: one financial year; no extended validity.
• No rigid deadline in the law, but it must be in place before the first zero-rated supply of the year, otherwise IGST has to be paid on the exports made before it.
• If conditions are breached, IGST with interest is payable and the facility can be withdrawn.
• Amounts and dates above reflect public sources read in October 2026 and change with notifications, so Zenith confirms the current figures in your quotation.

Common mistakes

• Forgetting the renewal at the start of April and exporting without a valid LUT.
• Filing the LUT for the wrong financial year.
• Not mentioning the LUT details on export invoices and shipping bills.
• Not realising export proceeds within the allowed time.
• Having returns pending while trying to furnish the LUT.
• Confusing a LUT with a bond.
• Assuming it also gives a refund; it only avoids payment of IGST.

FAQs